Public Procurement Service Improves Multiple Supplier Contract System Focused on Demand-Centered Approach

The Public Procurement Service (PPS) will significantly improve the Multiple Award Schedule (MAS) system to be more demand-oriented.

On the 20th, the PPS announced that it will revise administrative rules focusing on easing on-site regulations for procurement companies and strengthening the management of shopping mall products, to be implemented from the 1st of next month.

MAS is a contract system that allows demand agencies to select from multiple contractors who provide goods with equivalent or similar quality, performance, and efficiency. The market size using the MAS system reaches 17 trillion KRW annually.

As the MAS market has grown, there have recently been increasing calls for easing regulations on procurement companies and improving the convenience of using shopping malls, such as introducing a second-stage competition in MAS contracts.

Reflecting these market demands, the PPS is revising the administrative rules. First, sanctions for violations of the obligation to maintain bidding participation qualifications will be eased, and innovative products without delivery records will be allowed to participate in MAS contracts, thereby relaxing on-site regulations for procurement companies involved in MAS contracts.

Additionally, the PPS explained that it will guarantee holding discount events at comprehensive shopping malls three times a year and reduce price burdens by adjusting price scores during the second-stage competition in MAS.

The revised administrative rules also include strengthening contract management of MAS products in shopping malls. The exclusion period for products without delivery records will be extended from one year to three years for the next contract, and products that violate the obligation to maintain preferential prices more than three times will be excluded from re-contracting.

This expansion of the contract exclusion period is being promoted to reduce side effects, as products with no delivery records during the contract period after contract signing account for 50% of the total.

Conversely, the PPS plans to ensure that items with continuous delivery records can have contracts concluded promptly to enable timely supply.

Furthermore, the unilateral delivery extension regulation by demand agencies will be abolished, and the administrative rules will be revised to allow delivery extensions of up to 240 days after contract termination if mutually agreed upon, securing continuity in delivery performance for the industry.

Lee Jong-wook, Administrator of the PPS, said, “The revision of administrative rules focuses on improving long-standing regulations on procurement companies and enhancing the convenience of demand agencies. The PPS will continue to develop the MAS system to support stable sales channels for procurement companies and timely supply of procurement goods.”

This content was produced with the assistance of AI translation services.